Harvest Natural Resources Announces 2011 First
Quarter Results
Harvest
Natural Resources, Inc. (NYSE: HNR) today announced 2011 first quarter
earnings and provided an operational update.
Harvest
reported first quarter earnings of approximately $0.8 million
or $0.02
per diluted share, compared to earnings of $24.6 million,
or $0.64
per diluted share, for the same period last year. � The first quarter
results included exploration charges of $1.2 million,
or $0.04
per diluted share. � Also during the first quarter the Company incurred
costs from discontinued operations of $2.9 million
or $0.07
per diluted share from related revenue and expenses associated with the Utah
assets. � Finally, Harvest recognized a $1.3 million
gain, or $0.03
per diluted share, on the sale of its equity investment in Fusion
Geophysical, LLC (Fusion). � Adjusted for exploration charges,
proceeds from the sale of Fusion and the losses related to the discontinued
operations, first quarter 2011 earnings would have been $3.6 million
or $0.10
per diluted share. �
Petrodelta
reported earnings during the first quarter of $61.9 million,
$19.8
million net to Harvest's 32 percent interest, under
International Financial Reporting Standards (IFRS). � After adjustments
to Petrodelta's IFRS earnings, primarily to conform to U.S. GAAP, Harvest's
32 percent share of Petrodelta's earnings was $ 13.5 million.
�
Highlights for the first quarter of 2011 include:
Venezuela
- Oil
production from Petrodelta averaged 28,700 barrels of oil per day
(BOPD), an increase of 31 percent over the same period in 2010.
� The current production rate from Petrodelta is approximately
30,000 BOPD.
- On March
14, 2011, Petrodelta's shareholders approved the
remaining 2009 dividends of $30.6 million,
$12.2
million net to HNR Finance ($9.8 million
net to Harvest's 32 percent interest).
- Petrodelta's
first well at the untested Isleno field, ILM-8, was drilled and
completed in mid-March of 2011 and was tested at an initial rate of
1,800 BOPD. � Based on this successful test, Petrodelta is expected
to drill several additional wells in the Isleno field this year.
- Currently,
Petrodelta is operating two drilling rigs in the El Salto and the Uracoa
fields. � A workover rig is operating in the Tucupita field. �
United
States
- On March
22, 2011, Harvest announced it entered into a
definitive agreement with an affiliate of Newfield Exploration
Company to sell all of the Company's oil and gas assets in Utah's
Uinta Basin for $215 million
in cash. The sale has an effective date of March 1, 2011,
and closing is expected to occur in May 2011.
Indonesia
- On January
5, 2011, Harvest exercised its right of first
refusal to acquire an additional 10 percent equity in the Budong-Budong
Block PSC bringing its working interest in the block to 64.4 percent.
- The
Lariang LG-1well (LG-1) was drilled to a total depth of 5,311 feet and
encountered multiple hydrocarbon shows and overpressure in Miocene
formations requiring up to 16.5 pound per gallon mud. After encountering
difficulty in controlling the well due to high pressures, the well was
plugged and abandoned on April 8, 2011.
- The
test confirmed the presence of hydrocarbons as well as the existence of
an effective trap and seal in the Lariang sub-basin.
- Currently
transporting the rig and other equipment from the LG-1 site to the
Karama KD-1 (KD-1) well site. �
Gabon
- The
Ruche Marin-A exploration well located in the offshore waters of Gabon,
West Africa
spud on April
28, 2011 utilizing the Transocean Sedneth 701
semi-submersible drilling unit. �
Oman
- Well
planning and procurement of long lead items is planned for the second
quarter of 2011 in anticipation of spudding the first of the two
exploratory wells in late 2011.
Harvest
President and Chief Executive Officer, James A. Edmiston,
said, "We are pleased that the Utah sale
transaction with Newfield Exploration is nearing completion.
� The proceeds from this transaction will provide sufficient capital to
fund our existing exploration programs in Indonesia, Gabon and Oman and
reduce our debt. � Should our current exploration programs be
successful, we will be well-positioned to move quickly to the appraisal phase
of these projects."
Edmiston
continued, "We continue to see production growth in Petrodelta with a
current production rate of 30,000 BOPD. � As the development drilling
continues in the El Salto, Temblador and now the Isleno Fields, and as
infrastructure develops, we should continue to see increases in
production."
Mr.
Edmiston concluded, "In the second quarter, we should complete
the drilling of the Ruche Marin well in Gabon,
drill the KD well on our Budong-Budong block in Indonesia,
and close the Utah
transaction. � We believe that those activities, along with the ongoing
strategic alternatives process, hold significant promise for share appreciation."
Venezuela
During
the three months ended March 31, 2011, Petrodelta
produced approximately 2.6 million barrels of oil and sold 0.5 billion cubic
feet of natural gas; the average daily oil production was 28,700 BOPD, an
increase of 31 percent over the same period in 2010 and an increase of nine
percent over the previous quarter. � Cash from Operations for the
quarter were $48.6
million, or $27.41 per
barrel of oil equivalent, with average prices for the quarter of $87.73
per barrel.
During
the first quarter of 2011, Petrodelta drilled and completed five wells, four
of which were development wells drilled in the Uracoa, El Salto and Temblador
Fields and the first appraisal well drilled in the untested Isleno Field.
Currently, Petrodelta is operating two drilling rigs and one workover rig and
significant infrastructure work is underway.
Petrodelta's
first well in the untested Isleno Field, ILM-8, was drilled and completed in
mid-March of 2011 and was tested at 1,800 BOPD with two percent water. The
well was completed in the Lower Oficina Sand of the northern fault block with
a horizontal well. With an oil gravity of 15.5 API, this crude is very
similar to that being produced in the Uracoa Field just 7 km to the north.
The current production is being trucked to the Uracoa field; however, plans
are underway to build a pipeline connection system between Isleno and the UM2
main production facility at the Uracoa field. �
In November
2010, Petrodelta's board of directors declared a
dividend of $30.6
million, $12.2 million
net to HNR Finance ($9.8 million net to our 32
percent interest). � Petrodelta shareholder approval of the dividend was
received on March
14, 2011. The dividend represents the remaining 50
percent of the cash withdrawal rights as shareholders on Petrodelta's net
income as reported under IFRS for the year ended December 31, 2009.
�
On April
18, 2011, the Venezuelan government published in the Official
Gazette the Law Creating a Special Contribution on Extraordinary Prices
and Exorbitant Prices in the International Hydrocarbons Market (the
"amended Windfall Profits Tax"). � The amended Windfall
Profits Tax repeals the original Windfall Profits Tax. � The amended
Windfall Profits Tax establishes a special contribution for extraordinary
prices to the Venezuelan government of 20 percent to be applied to the
difference between the price fixed by the Venezuela
budget for the relevant fiscal year (set at $40 per barrel
for 2011) and $70
per barrel. � The amended Windfall Profits Tax also establishes a
special contribution for exorbitant prices to the Venezuelan government of
(1) 80 percent when the average price of the Venezuelan Export Basket
("VEB") exceeds $70 per barrel but is less than $90
per barrel; (2) of 90 percent when the average price of the VEB exceeds $90
per barrel but is less that $100 per
barrel; and (3) of 95 percent when the average price of the VEB exceeds $100
per barrel. � It is not clear from the drafting of the amended Windfall
Profits Tax if the special contribution for extraordinary prices and the
special contribution for exorbitant prices are exclusive of each other;
whether these layers are additive or if the 95 percent rate would apply from $70
to the price above $100;
and whether the new rates apply to 100 percent of production. � The
amended Windfall Profits Tax caps the royalty paid on production at $70
per barrel. � By placing a cap on the royalty barrels, the amended
Windfall Profits Tax reduces the royalties paid to the government and
increases payments to the National Development Fund
("FONDEN"). � Also, the amended Windfall Profits Tax considers
that an exemption of this tax could be granted by Ministry of Energy and
Petroleum ("MENPET") for the incremental production of
projects and grass root developments until the specific investments are
recovered. This exemption has to be considered and approved on a case by case
basis by MENPET. � There is still a lack of clarity on several issues.
� We are currently evaluating the impact of the amended Windfall Profits
Tax on Petrodelta's operations. �
UNITED STATES - Antelope Project - Utah
On March
22, 2011, Harvest announced it had entered into a
definitive agreement with an affiliate of Newfield Exploration Company
(Newfield) to sell all of the Company's oil and gas assets in Utah's Uinta
Basin for $215 million in cash. The sale
has an effective date of March 1, 2011.
The net
proceeds from the sale are estimated to be $205 million
after deduction for transaction related costs. � Newfield is completing
its land due diligence process and the operational transition process
continues. � The transaction is on schedule to close mid-May
2011.
EXPLORATION
DRILLING ACTIVITIES
Indonesia
Budong-Budong
PSC - Indonesia
The
Lariang LG-1 well, the first of two planned exploration wells, was spud on January
6, 2011 in the Budong-Budong Block, West Sulawesi.
� The well has been drilled to a depth of 5,311 feet and has encountered
multiple oil and gas shows within the secondary Miocene objective. Wireline
logs and samples of reservoir fluids have confirmed the presence of
hydrocarbons, trap and seal thus greatly de-risking the exploration potential
of the license. � The high formation pressures and control difficulties required
the use of more casing strings at shallower depths than were originally
planned. � At a depth of 5,300 feet, losses of heavy drilling mud into
the formation were encountered which, when coupled with the very high
formation pressures, led to the decision to discontinue operations and plug
and abandon the well for safety reasons on April 8, 2011.
The primary Eocene targets had not yet been reached, as the well was planned
for a total measured depth of approximately 7,200 feet.
The
drilling rig is currently mobilizing to drill the second exploratory well on
the block, the Karama KD-1 prospect, which is located approximately 50 miles
south of the LG-1 well. � The KD-1 well will be drilled to a total depth
of about 10,500 feet. � The well is expected to spud during the second
quarter of 2011.
Gabon West Africa
Dussafu
Project - Gabon
("Dussafu PSC")
The
Ruche Marin-A exploration well located in the offshore waters of Gabon, West Africa
spud on April
28, 2011. � This exploration well will be drilled
utilizing the Transocean Sedneth 701 semi-submersible drilling unit. �
This
exploration well will be drilled in a water depth of 380 feet to test
multiple stacked pre-salt targets to a planned total measured depth of
approximately 10,100 feet with an option to deepen to 12,500 feet.
� Drilling is anticipated to require approximately 28 days. In the event
of success, additional time will be required to test and evaluate the well.
�
Oman
("Block
64 EPSA")
Operational
activities on the Al Ghubar / Qarn Alam license ("Block 64 EPSA")
during the three months ended March 31, 2011
included the completion of the reprocessing and integrating multiple existing
3-D seismic databases. � Detail geological and geophysical
interpretation is underway to refine the prospects and define drilling
locations. � Well planning and procurement of long lead items began in April
2011 in anticipation of spudding the first of the two
exploratory wells in late 2011. �
Non-GAAP
Financial Measures
In this
press release, Petrodelta's EBITDA disclosure is not presented in accordance
with accounting principals generally accepted in the United States
(GAAP) and Petrodelta's financials are not intended to be used in lieu of
GAAP presentations of net income or cash flows from operating activities.
� EBITDA is presented because we believe it provides additional
information with respect to both the performance of our fundamental business
activities as well as our ability to meet our future capital expenditures and
working capital requirements. � We also believe that financial analysts
commonly use EBITDA to analyze Petrodelta's performance. � Although we
present selected items that we consider in evaluating our performance, you
should also be aware that the items presented do not represent all items that
affect comparability between the periods presented. Variations in our
operating results are also caused by changes in volumes, prices, exchange
rates and numerous other factors. These types of variations are not
separately identified in this release, but will be discussed, as applicable,
in management's discussion and analysis of operating results in our Quarterly
Report on Form 10-Q for the quarter ended March 31, 2011.
A
reconciliation of EBITDA to net income and cash flows from operating
activities for the periods presented is included in the tables attached to
this release.
Conference
call
Harvest
will hold a conference call at 10:00 a.m. Central Daylight Time
on Tuesday,
May 10, 2011, during which management will discuss
Harvest's 2011 first quarter results. The conference leader will be James
A. Edmiston, President and Chief Executive Officer. To
access the conference call, dial 800-479-9001 or 719-457-2731, five to ten
minutes prior to the start time. At that time you will be asked to provide
the conference number, which is 6525506. A recording of the conference call
will also be available for replay at 719-457-0820, passcode 6525506, through May 16,
2011.
The
conference call will also be transmitted over the internet through the
Company's website at www.harvestnr.com. To listen to the live webcast, enter
the website fifteen minutes before the call to register, download and install
any necessary audio software. For those who cannot listen to the live
broadcast, a replay of the webcast will be available beginning shortly after
the call and will remain on the website for approximately 90 days.
About Harvest
Natural Resources:
Harvest Natural Resources, Inc.,
headquartered in Houston, Texas,
is an independent energy company with principal operations in Venezuela,
producing and exploration assets in the United States,
exploration assets in Indonesia, West Africa,
China and Oman and
business development offices in Singapore
and the United Kingdom.
For more information visit the Company's website at www.harvestnr.com.
CONTACT:
Stephen
C. Haynes
Vice President, Chief Financial Officer
(281) 899-5716
This
press release may contain projections and other forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. They include estimates and timing
of expected oil and gas production, oil and gas reserve projections of future
oil pricing, future expenses, planned capital expenditures, anticipated cash
flow and our business strategy. All statements other than statements of
historical facts may constitute forward-looking statements. Although Harvest
believes that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations will prove to
have been correct. Actual results may differ materially from Harvest's expectations
as a result of factors discussed in Harvest's 2010 Annual Report on Form 10-K
and other public filings.
HARVEST NATURAL RESOURCES,
INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
December 31,
|
|
|
|
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
ASSETS:
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
Cash and cash equivalents
|
$ � 24,664
|
$ � � �
� 58,703
|
|
|
Restricted cash
|
4,490
|
-
|
|
|
Accounts and
notes receivable, net
|
|
|
|
|
|
Oil and gas
revenue receivable
|
3,724
|
1,907
|
|
|
|
Dividend receivable - equity affiliate
|
12,200
|
-
|
|
|
|
Joint interest and other
|
4,369
|
2,325
|
|
|
|
Notes receivable
|
3,255
|
3,420
|
|
|
Advances to equity affiliate
|
1,852
|
1,706
|
|
|
Assets held for sale
|
102,544
|
88,774
|
|
|
Prepaid expenses and other
|
2,193
|
4,793
|
|
|
|
Total current assets
|
159,291
|
161,628
|
|
|
|
|
|
|
|
|
OTHER ASSETS
|
2,293
|
2,477
|
|
|
|
|
|
|
|
|
INVESTMENT IN EQUITY AFFILIATES
|
292,564
|
287,933
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, net
|
48,034
|
36,206
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
$ 502,182
|
$ � �
� 488,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY:
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
Joint interest
and royalty payable
|
$ � � 1,771
|
675
|
|
|
Accounts
payable, trade and other
|
3,553
|
2,530
|
|
|
Accounts payable - carry obligation
|
4,910
|
8,395
|
|
|
Accrued expenses
|
24,284
|
15,087
|
|
|
Liabilities held for sale
|
599
|
663
|
|
|
Accrued Interest
|
237
|
896
|
|
|
Income taxes payable
|
283
|
72
|
|
|
|
Total current liabilities
|
35,637
|
28,318
|
|
|
|
|
|
|
|
|
OTHER LONG-TERM LIABILITIES
|
2,268
|
1,834
|
|
|
|
|
|
|
|
|
LONG-TERM DEBT
|
81,775
|
81,237
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
-
|
-
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
|
|
Common stock and
paid-in capital
|
232,291
|
230,763
|
|
|
Retained earnings
|
142,354
|
141,584
|
|
|
Treasury stock
|
(65,543)
|
(65,543)
|
|
|
|
Total Harvest stockholders' equity
|
309,102
|
306,804
|
|
Noncontrolling Interest
|
73,400
|
70,051
|
|
|
Total Equity
|
382,502
|
376,855
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ 502,182
|
$ � �
� 488,244
|
|
|
|
|
|
|
|
|
HARVEST NATURAL RESOURCES,
INC.
|
|
|
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
(in thousands except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
Three months Ended March 31,
|
|
|
2011
|
2010
|
|
|
|
|
|
EXPENSES:
|
|
|
|
�
� Depreciation and amortization
|
124
|
101
|
|
� � Exploration expense
|
1,189
|
1,246
|
|
�
� General and administrative
|
6,707
|
5,317
|
|
�
� Taxes other than on income
|
349
|
300
|
|
|
8,369
|
6,964
|
|
LOSS FROM OPERATIONS
|
(8,369)
|
(6,964)
|
|
|
|
|
|
OTHER
NON-OPERATING INCOME (EXPENSE)
|
|
|
|
�
� Investment earnings and other
|
145
|
131
|
|
� � Interest expense
|
(2,212)
|
(416)
|
|
�
� Other non-operating expenses
|
(431)
|
-
|
|
�
� Loss on exchange rates
|
(11)
|
(1,527)
|
|
|
(2,509)
|
(1,812)
|
|
LOSS FROM
CONSOLIDATED COMPANIES CONTINUING OPERATIONS
|
|
|
|
� �
� � � BEFORE INCOME TAXES
|
(10,878)
|
(8,776)
|
|
Income tax expense (benefit)
|
222
|
(19)
|
|
LOSS FROM
CONSOLIDATED COMPANIES CONTINUING OPERATIONS
|
(11,100)
|
(8,757)
|
|
Net income from
unconsolidated equity affiliates
|
18,104
|
38,367
|
|
NET INCOME FROM
CONTINUING OPERATIONS
|
7,004
|
29,610
|
|
DISCONTINUE OPERATIONS
|
(2,885)
|
2,315
|
|
NET INCOME
|
4,119
|
31,925
|
|
Less: � Net
Income Attributable to Noncontrolling Interest
|
3,349
|
7,335
|
|
NET INCOME
ATTRIBUTABLE TO HARVEST
|
$ � � 770
|
$ 24,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2011
|
March 31, 2010
|
|
NET INCOME
ATTRIBUTABLE TO HARVEST PER COMMON SHARE:
|
Basic
|
Dilutive
|
Basic
|
Dilutive
|
|
�
� Income from continuing operations
|
3,655
|
3,655
|
22,275
|
22,275
|
|
� � Discontinued operations
|
(2,885)
|
(2,885)
|
2,315
|
2,315
|
|
� �
� � � Net income attributable to Harvest
|
770
|
770
|
24,590
|
24,590
|
|
�
� Weighted average common shares outstanding
|
33,945
|
33,945
|
33,274
|
33,274
|
|
�
� Effect of dilutive shares
|
-
|
4,555
|
-
|
5,148
|
|
� �
� � � Weighted average common shares including dilutive
effect
|
33,945
|
38,500
|
33,274
|
38,422
|
|
|
|
|
|
|
|
Per Share:
|
|
|
|
|
|
�
� Income from continuing operations
|
$ � 0.11
|
$ � � 0.09
|
$ � 0.67
|
$ � 0.58
|
|
� � Discontinued operations
|
$ (0.09)
|
$ � (0.07)
|
$ � 0.07
|
$ � 0.06
|
|
� �
� � � Net income attributable to Harvest
|
$ � 0.02
|
$ � � 0.02
|
$ � 0.74
|
$ � 0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HARVEST NATURAL RESOURCES,
INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands, unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months Ended March 31,
|
|
|
|
|
2011
|
2010
|
|
Cash Flows From
Operating Activities:
|
|
|
|
|
Net income
|
$ � 4,119
|
$ 31,925
|
|
|
Adjustments to
reconcile net income (loss) to net cash
|
|
|
|
|
� used in
operating activities:
|
|
|
|
|
|
Depletion, depreciation and amortization
|
934
|
566
|
|
|
|
Loss on disposal
of assets
|
1,440
|
-
|
|
|
|
Amortization of
debt financing costs
|
270
|
108
|
|
|
|
Amortization of
discount on debt
|
538
|
-
|
|
|
|
Net income from
unconsolidated equity affiliate
|
(18,104)
|
(38,367)
|
|
|
|
Non-cash
compensation related charges
|
1,114
|
853
|
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts and notes receivable
|
(3,696)
|
4,616
|
|
|
|
Advances to equity affiliate
|
(146)
|
1,066
|
|
|
|
Prepaid expenses and other
|
2,600
|
350
|
|
|
|
Revenue and royalty payable
|
1,096
|
134
|
|
|
|
Accounts payable
|
1,023
|
1,405
|
|
|
|
Accrued expenses
|
2,071
|
423
|
|
|
|
Accrued Interest
|
(925)
|
(4,383)
|
|
|
|
Other liabilities
|
434
|
370
|
|
|
|
Income taxes payable
|
211
|
(490)
|
|
|
|
Net Cash Used In
Operating Activities
|
(7,021)
|
(1,424)
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
Additions of
property and equipment
|
(8,361)
|
(13,495)
|
|
|
Additions to
assets held for sale
|
(15,633)
|
-
|
|
|
Proceeds from
sale of equity affiliate
|
1,273
|
-
|
|
|
Increase in restricted cash
|
(4,490)
|
(1,000)
|
|
|
Investment costs
|
(34)
|
(1,656)
|
|
|
|
Net Cash Used In
Investing Activities
|
(27,245)
|
(16,151)
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
Net proceeds
from issuances of common stock
|
416
|
-
|
|
|
Proceeds from
issuance of long-term debt
|
-
|
32,000
|
|
|
Financing costs
|
(189)
|
(2,627)
|
|
|
|
Net Cash
Provided by Financing Activities
|
227
|
29,373
|
|
|
|
Net Increase
(Decrease) in Cash
|
(34,039)
|
11,798
|
|
Cash and Cash
Equivalents at Beginning of Period
|
58,703
|
32,317
|
|
Cash and Cash
Equivalents at End of Period
|
$ 24,664
|
$ 44,115
|
|
|
|
|
|
|
|
PETRODELTA, S. A.
|
|
STATEMENTS OF OPERATIONS
|
|
(in thousands except per BOE and per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
Three months Ended
March 31, 2011
|
Three months Ended
March 31, 2010
|
|
|
|
|
|
|
|
Barrels of oil sold
|
2,583
|
|
1,968
|
|
|
MCF of gas sold
|
470
|
|
660
|
|
|
� � � � Total BOE
|
2,661
|
|
2,078
|
|
|
� �
� � Total BOE - Net of 33% Royalty
|
1,774
|
|
1,385
|
|
|
|
|
|
|
|
|
Average price/barrel
|
$87.73
|
|
$71.90
|
|
|
Average price/mcf
|
$1.54
|
|
$1.54
|
|
|
|
|
|
|
|
|
|
$
|
$/BOE - net
|
$
|
$/BOE - net
|
|
REVENUES:
|
|
|
|
|
|
� � Oil sales
|
$ 226,613
|
|
$ 141,502
|
|
|
� � Gas sales
|
726
|
|
1,018
|
|
|
� � Royalty
|
(77,315)
|
|
(47,986)
|
|
|
|
150,024
|
84.57
|
94,534
|
68.26
|
|
EXPENSES:
|
|
|
|
|
|
� � Operating expenses
|
14,282
|
8.05
|
10,043
|
7.25
|
|
� � Workovers
|
6,475
|
3.65
|
-
|
-
|
|
�
� Depletion, depreciation and amortization
|
12,487
|
7.04
|
8,607
|
6.22
|
|
�
� General and administrative
|
(930)
|
(0.52)
|
3,417
|
2.47
|
|
� � Windfall
profits tax
|
27,126
|
15.29
|
1,251
|
0.90
|
|
|
59,440
|
33.51
|
23,318
|
16.84
|
|
INCOME FROM OPERATIONS
|
90,584
|
51.06
|
71,216
|
51.42
|
|
|
|
|
|
|
|
Gain on exchange rate
|
-
|
-
|
118,716
|
85.72
|
|
Investment earnings and other
|
167
|
0.09
|
2,894
|
2.09
|
|
Interest expense
|
(1,272)
|
(0.71)
|
(895)
|
(0.65)
|
|
|
|
|
|
|
|
Income before income tax
|
89,479
|
50.44
|
191,931
|
138.58
|
|
|
|
|
|
|
|
� � Current income tax expense
|
53,343
|
30.07
|
85,420
|
61.68
|
|
� � Deferred income tax expense
(benefit)
|
(25,762)
|
(14.52)
|
42,464
|
30.66
|
|
NET INCOME
|
61,898
|
34.89
|
64,047
|
46.24
|
|
Adjustment to reconcile to reported Net Income from
|
|
|
|
|
|
� � Unconsolidated Equity Affiliate:
|
|
|
|
|
|
� � � � Deferred income tax
expense (benefit)
|
18,563
|
|
(32,989)
|
|
|
� � � � Net income equity
affiliate
|
43,335
|
|
97,036
|
|
|
Equity interest in unconsolidated equity affiliate
|
40%
|
|
40%
|
|
|
Income before amortization of excess basis in
equity affiliate
|
17,334
|
|
38,814
|
|
|
� � Amortization of excess basis in
equity affiliate �
|
(421)
|
|
(334)
|
|
|
� � Conform depletion expense to GAAP
|
(81)
|
|
(113)
|
|
|
Net income from unconsolidated equity affiliate
|
$ � 16,832
|
|
$ � 38,367
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
|
Reconcile NET INCOME as reported under IFRS to
adjusted EBITDA:
|
|
|
|
|
|
� � NET INCOME
|
$ � 61,898
|
34.89
|
$ � 64,047
|
46.24
|
|
� � Add back non-cash items:
|
|
|
|
|
|
� � � � Depletion,
depreciation and amortization
|
12,487
|
7.04
|
8,607
|
6.22
|
|
� � � � Deferred income tax
expense (benefit)
|
(25,762)
|
(14.52)
|
42,464
|
30.66
|
|
Special Charges, net of tax
|
-
|
-
|
(65,274)
|
(47.12)
|
|
|
|
|
|
|
|
CASH FROM OPERATIONS
|
48,623
|
27.41
|
49,844
|
36.00
|
|
|
|
|
|
|
|
� � Investment earnings and other
|
(167)
|
(0.09)
|
(2,894)
|
(2.09)
|
|
� � Interest expense
|
1,272
|
0.71
|
895
|
0.65
|
|
� � Current income tax expense
|
53,343
|
30.07
|
31,978
|
23.08
|
|
|
|
|
|
|
|
� � Adjusted EBITDA (IFRS)
|
$ 103,071
|
58.10
|
$ � 79,823
|
57.64
|
|
|
|
|
|
|
|
SOURCE Harvest Natural
Resources, Inc.
|